Imperial Brands PLC (LSE:IMB), the tobacco company, said it is on track to deliver a ramp-up in both interim and full-year profits after it hiked prices.
First-half operating profit is expected to grow by a low single-digits with the second-half improvement to be higher.
Management says it is confident in meeting full-year guidance, which targets improvements to net revenues and aims to deliver a step-up in adjusted operating profit growth.
Combustible tobacco operations, which covers its cigarette brands like Golden Virginia and JPS, saw declines in sales in the UK and Germany, albeit offset by jumps in Spain, the US and Australia.
Imperial says second-half performance will be “underpinned by embedded tobacco pricing already taken in the first half”.
Additionally, next-generation products (NGP), such as vapes or nicotine pouches, are predicted to build scale and reduce losses with revenues growing in the mid-to high-teens.
A £1.1 billion share buyback programme is more than half completed with £604 million of the money already spent.
Full interim results will be published on May 15 2024.